Prices remain soft in the market as traders await Fed Chairman Jerome Powell’s statement on the size of the next rate hike. Currently, the market consensus is for a 0.75 basis point rate hike. Meanwhile, an analyst pointed out some altcoin projects that can be followed. Here are the details…
There are developments occurring in the altcoin ecosystem
The Dow lost 0.75 percent, the S&P 500 and the Nasdaq lost 0.79 percent and 0.64 percent, respectively. Bitcoin (BTC) continues to struggle with the $ 19,000 level, as we have also reported as Kriptokoin.com. On the other hand, Ethereum (ETH) continues to see post-merge lows, seeing intraday lows of $1,329. While BTC, ETH, and altcoins aren’t making any notable moves that challenge the current downtrend in terms of market structure and technical analysis, there are a few interesting developments taking place. Analyst Ray Salmond drew attention to the 3 altcoin projects and also talked about the developments in their ecosystem.
The first altcoin on the analyst’s list: LDO
Lido (LDO) corrected with Ethereum as the enthusiasm for merge trading waned. However, the asset is currently trading in what some call a bull flag. Although ETH bulls and traders profited from long Ether positions, the merge was successful. Stakes and validators are still yielding on the altcoin, and there are fundamentals that keep investors bullish on Ether.
Ideally, if decentralized applications (DApps) and active users of Ether continue to expand and traders continue to accumulate, it can provide productive capital in an otherwise downside market.
Ripple looks interesting
From a market structure perspective, Ripple (XRP) looks interesting and there has been a ton of social chatter on Twitter lately. Following the usual hope-linked narrative, members of the XRP community suggest that the price could “go to the moon” if XRP passes the SEC lawsuit and is not considered a security. “Basically, there is pre-bull market precedent,” the analyst says. Volumes are rising, the price broke a long-term descending trendline that has historically acted as resistance. From the perspective of XRP’s HTF market structure, it can be concluded that there is a price bottom.
But as a warning, hype and anticipation tend to trigger volume spikes. Regardless of whether the SEC decides whether XRP is a security or vice versa, investor excitement may subside and the price may trade in the same horizontal range permanently or until the “next bull market.”
The last crypto on the analyst’s list: ALGO
The market structure of Algorand (ALGO) also looks interesting, according to the analyst. The price followed the full bull market rally and is now trading in the same range as in 2019 and 2020. Occasional bursts of buying volume did not last long enough to break past the $0.40 level. If the broader market starts to consolidate and ALGO buying volume continues, turning this moving average to support could see a spike to $0.69. Daily closes above $0.80 could reach a significantly higher high, indicating confirmation of a trend reversal.